Acushnet Holdings Corp (GOLF)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 53,059 | 65,435 | 58,904 | 281,677 | 151,452 |
| Short-term investments | US$ in thousands | — | 452 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 472,707 | 451,135 | 548,625 | 483,024 | 357,679 |
| Quick ratio | 0.11 | 0.15 | 0.11 | 0.58 | 0.42 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($53,059K
+ $—K
+ $—K)
÷ $472,707K
= 0.11
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates that the company has enough liquid assets to cover its short-term liabilities.
Analyzing the quick ratio of Acushnet Holdings Corp from December 31, 2020, to December 31, 2024, reveals fluctuations in its short-term liquidity position.
As of December 31, 2020, the quick ratio stood at 0.42, indicating that the company had only 42 cents in liquid assets for every dollar of current liabilities. This suggests potentially inadequate liquidity to cover short-term obligations.
By December 31, 2021, the quick ratio improved to 0.58, showing a slight increase in the company's ability to meet short-term obligations with its liquid assets.
However, there was a notable decline in the quick ratio by December 31, 2022, to 0.11, signaling a significant decrease in the company's ability to cover short-term liabilities with its current liquid assets. This may raise concerns about potential liquidity challenges.
The quick ratio improved slightly to 0.15 by December 31, 2023 but remained relatively low compared to earlier years, indicating that Acushnet Holdings Corp may still struggle to meet short-term obligations with its available liquid assets.
By the end of December 31, 2024, the quick ratio remained at 0.11, which suggests that the company's short-term liquidity position had not significantly improved and continued to be a point of concern.
Overall, the trend in Acushnet Holdings Corp's quick ratio over the years indicates varying levels of short-term liquidity challenges, with periods of improvement but still highlighting potential difficulties in meeting immediate obligations with its liquid assets.
Peer comparison
Dec 31, 2024